EUR/USD – Falling Wedge at Major Fibonacci Zone | Bullish ReversAfter a strong mid-June rally, EUR/USD has pulled back into a key fib cluster, showing early signs of reversal from a classic falling wedge pattern — often a precursor to bullish breakouts.
Technical Breakdown:
📉 Descending Trendline
🔍 Fibonacci Confluence:
Price is reacting from the 0.5-0.618 – 0.705 zone (1.16421-1.15969), aligning perfectly with historical demand and the golden zone of the fib retracement.
Just below sits the 0.79 fib (1.15339), which also marks our invalidity level for this idea — a deep but powerful retracement if tested.
💡 RSI:
While still below 50, it has created a hidden bullish divergence between July 12–17, hinting that momentum is flipping back to bulls.
🧠 Educational Insight:
This setup combines Trendlines, Fibonacci retracement theory, and EMA dynamics to build a multi-layered trade thesis — the type of confluence we look for at Wright Way Investments.
Price doesn’t just reverse because it hits a fib level. But when structure, EMAs, and RSI align — the odds increase significantly.
📈 Trade Setup (Idea-Based, Not Financial Advice):
Long Entry Zone: Current area (1.159–1.161), with confirmation above 1.1626
Invalidation: Clean break & close below 1.15339
Target Zones:
🎯 TP1 – 1.1642 (50 fib & retest zone)
🎯 TP2 – 1.1686 (38.2 fib)
🎯 TP3 – 1.1755 (Weekly Resistance)
📌 Summary:
EUR/USD is forming a textbook reversal setup, supported by fib precision and EMA alignment. Patience is key — but the ingredients are here for a strong bullish continuation.
